Bitcoin Price Analysis: BTC Continues To Bleed, Slumps to <$80,000 Intraday Low

Bitcoin (BTC) continued to decline over the weekend as volatility and bearish sentiment persisted after President Donald Trump’s executive order to create a strategic Bitcoin reserve disappointed investors. Uncertainty caused by trade tariffs on Canada and Mexico and the risk of a trade war with China also impacted investor sentiment. 

Bitcoin (BTC) is down over 3% in the past 24 hours and is trading around $82,800 after registering a substantial decline on Sunday. 

Bitcoin (BTC) Continues Decline

Bitcoin (BTC) and the broader crypto market have declined as investors assess the impact of Trump’s economic policy, trade tariffs, a Bitcoin reserve,  and a potential trade war with China. The flagship cryptocurrency declined substantially on Sunday, falling to a low of $80,005 despite President Trump signing an executive order to create a strategic Bitcoin reserve and a digital asset stockpile. According to QCP Capital, the reaction is because investors have realized no actual budget has been allocated for Bitcoin purchases. 

“The knee-jerk reaction lower likely stems from the realization that no actual budget has been allocated for Bitcoin purchases in the near term.”

Trump’s executive order directs the Secretaries of Treasury and Commerce to develop a budget-neutral strategy to acquire additional Bitcoin. However, it stops short of using taxpayer funds for purchases. This did not go well with investors who pulled their capital from the market. David Lawant, head of research at FalconX, stated, 

“Bitcoin tumbled about 5% immediately following the announcement before partially recouping most of the losses, reflecting short-term expectations that the U.S. government will not be immediately committing to acquiring crypto assets in the open market.”

Despite the market reaction, many analysts see a strategic Bitcoin reserve as a significant milestone for the asset. The order also mandates a 60-day Treasury review of legal and investment considerations for the reserve while Treasury and Commerce explore additional avenues to acquire Bitcoin. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, stated, 

“I think the market has this wrong. The market is short-term disappointed” that the government didn’t say it was immediately going to start acquiring 100,000 or 200,000 bitcoins. I think the right question to ask is: did this executive order make it more likely that in the future Bitcoin will be a geopolitically important currency or asset? Will other governments look to follow the U.S.’s lead and build their own strategic reserve? And to me, the answer to that is emphatically yes. I think the market will soon find its footing and realize that this is incredibly bullish long term for this asset and for crypto as a whole.”

Is History Repeating Itself?

Bitcoin (BTC) surged to a new all-time high following Donald Trump’s inauguration in 2025. It also hit a local top at the launch of spot Bitcoin ETFs in January 2024, with both events followed by a market correction. Since Trump’s inauguration, the flagship cryptocurrency has dropped to $80,000, a decline of almost 30%. While the price action indicates bearishness, Bitcoin bulls view it as a long-term catalyst, especially with the US switching to a more favorable stance towards Bitcoin and crypto. However, a lack of buying pressure suggests short-term weakness. 

BTC reported a similar price action when the highly anticipated spot Bitcoin ETFs were launched. BTC surged from $25,0000 in October 2023 to $49,000 in January 2024, a 40% rally. However, after reaching a local top following the launch, BTC declined as much as 20% before eventually reaching a new all-time high above $73,000 in March. This time, BTC surged almost 60% after Donald Trump won the elections, hitting a new all-time high of $109,000 in January before undergoing a 30% correction. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) slumped to an intraday low of $80,005 on Sunday as markets faced a substantial downturn. The drop occurred as traders reassessed the impact of global trade tensions, President Trump’s Bitcoin reserve order, tariffs against Canada and Mexico, and a potential trade war with China. According to the executive order, the strategic Bitcoin reserve will be funded by the BTC seized during criminal and civil cases. The order also stated the government could not sell any BTC added to the reserve. The order also directs the Secretaries of Treasury and Commerce to develop a budget-neutral strategy to acquire Bitcoin. David Lawant, head of research at FalconX, stated, 

“Bitcoin tumbled about 5% immediately following the announcement before partially recouping most of the losses, reflecting short-term expectations that the U.S. government will not be immediately committing to acquiring crypto assets in the open market.”

BTC registered a sharp decline on Friday, dropping below $80,000 to a low of $78,173. However, it recovered from this level to reclaim $80,000 and settle at $84,362. The price recovered on Saturday, rising over 2% and settling at $86,182. Bullish sentiment intensified on Sunday as markets rallied. As a result, BTC surged over 9% to reclaim $90,000, move past the 20-day SMA, and settle at $94,322. However, the rally was short-lived as the price dropped nearly 9% on Monday, falling below $90,000 and the 20-day SMA to $86,225. BTC fell to an intraday low of $81,500 on Tuesday before recovering to register an increase of 1.27% and settle at $87,316. Buyers retained control on Wednesday, and BTC rose nearly 4% to reclaim $90,000 and settle at $90,639.

Source: TradingView

BTC was back in the red on Thursday, dropping 0.75% to slip below $90,000 and settle at $89,597. Sellers retained control on Friday as the price fell 3.53% to $86,781. BTC started the weekend with a marginal decline, falling to $86,267. Bearish sentiment intensified on Sunday as BTC plunged below the 200-day SMA, falling to a low of $80,005 before settling at $80,736. BTC rose to an intraday high of $84,978 during the current session as buyers attempted a move past $85,000. However, it lost momentum after reaching this level and dropped to its current level, dropping below $80,000 to $79,990. If BTC continues to fall, it could retest its recent low of $78,000. A break below this level could see the price drop to $75,000. Buyers must push BTC above the 200-day SMA and reclaim $90,000 to invalidate such a scenario.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.